3. Statement by the Counsel General and Brexit Minister: Update on the Brexit Negotiations

Part of the debate – in the Senedd at 3:33 pm on 30 April 2019.

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Photo of David Rees David Rees Labour 3:33, 30 April 2019

Can I thank the Cabinet Secretary—sorry, the Minister for Brexit—for his statement this afternoon? And can I also join with Delyth Jewell in supporting the comments about the hard work and dedication of the public servants who work on this, and have been working on it for so many months? You've highlighted clearly in your statement the shambles that we are seeing as a consequence of the failed leadership of the current Prime Minister. This afternoon, we've heard the Conservatives trying to defend the indefensible, and we've heard UKIP trying to deny the economic evidence that has been put in place with regard to the impact of Brexit on Wales, particularly of a 'no deal' and World Trade Organization rules, which would damage this Welsh economy severely.

But you focused on a few things as to what's been going on, and we all know that the only thing really that's changed since we last met is the fact that there is now an extension that's been put in place—until Halloween, of all nights—of the departure date. But we are still in an impasse, because the Prime Minister has failed to convince her party that her deal is worthy of being supported. And we all know why: because it actually is not good for the country, and she needs to start changing her red lines. She has not made any compromise whatsoever. Her red lines are still the same as they were 12 months ago, and I think that's the reason why we are where we are. There's no doubt about that.

There are few questions I want to ask, perhaps beyond the negotiations, but which are consequential upon those negotiations and which actually impact upon Wales very severely. This involves, perhaps, your discussions with your UK Government colleagues in relation to some of these things. Where are we on getting the movement towards a Joint Ministerial Committee on international trade so the Welsh Government can have a say in future trade agreements? Because it's important that, as we move forward, we now have an extra bit of time to do some work on getting a forum that works for Wales, and not just works for the Tory party in London. 

Could I also look at some of the actions taken by the UK Government on state aid? I understand that there is a regulation being put forward that would give powers to the Secretary of State on state aid. There is a claim that it's a reserved matter, but clearly we have a very important say on the implications of using state aid. There has also been talk about changing it to the Competition and Markets Authority. But where's the Welsh representation on that? Where's the Welsh Government representation? On other public authorities—. We had an argument on the Trade Bill about Welsh representation or Welsh nomination for the trade remedies authority. What about other bodies, such as the Migration Advisory Committee? Where are the discussions going on during this time that we have to ensure that the Welsh Government voice is actually being heard in these bodies that are making important decisions?

Also, the joint scrutiny committee, which is part of the withdrawal agreement—is there going to be any involvement of the devolved nations in this joint committee scrutiny process? Are we there yet? Are the UK Government moving in that direction? Do they recognise that devolution exists, and that actually we should be having a say in some of these bodies, particularly this joint scrutiny committee, which will oversee the transition period, if there is one? 

Minister, only this week we've seen the uncertainty of the student fees fiasco going on, where clearly it is possible that EU students may be now required to pay full fees—full overseas fees, I might add—which is completely going to put people off coming here and it's going to affect Welsh higher education institutions—a devolved area. It's going to affect Welsh HE research collaboration—a devolved area. So, are you having negotiations on those matters?

You haven't mentioned much in your statement about the preparations for 'no deal', other than we've gone a long way. Have you learnt lessons from it? We've passed the date of 12 April. We've gone beyond that now. We know Halloween is our next deadline. Have you learnt lessons? Or are you undertaking a review to ensure that lessons learnt on the 'no deal' preparations up to 12 April can be put into place if we have to—because we may still be in that situation on 31 October—look at a 'no deal' scenario? Are you learning lessons? How much of what you've done to date can be transferred to October?

Now, we know about the Welsh Government's purchase or lease of a warehouse. Is that going to continue until 31 October? What's the situation? Where is the stock that we may need to put in place for that and other products? Where are we in those situations? And how much does the Welsh Government expect to spend in the next six months holding those situations, whilst we await a possibility of a deal or no deal? We just don't know. Our businesses, I'm sure, would want to know exactly what support they'd have from you as well.